Yaqeen Capital is going public on Nomu in a secondary share sale. The Riyadh-based advisor, brokerage house, and asset manager is preparing to float a 20% stake on the Tadawul’s parallel market, according to a prospectus (pdf). No price range has been set for the offering yet.

In context: Yaqeen is itself a top advisor to other companies going public on Nomu.

The timeline:

• Qualified Investors can place their orders starting Sunday, 5 April 2024, until Monday, 12 May, with each investor allowed to buy a minimum of 10 shares and a maximum of 750k shares;
• The final share allocation is slated for Wednesday, 15 May;
• Excess funds, if any, will be returned no later than Tuesday, 21 May.

Use of proceeds + substantial shareholders: Proceeds from the transaction will go to Falcom Holding Company, which will hold a 40% stake after the sale. The second substantial shareholder is fully owned by Flacom Holding, giving it an effective 80% stake after the offering wraps up. Falcom owns other non-bank financial services companies, its website shows.

Lock-up period: Substantial shareholders will not be able to execute any transactions on their shares for a period of 12 months starting from the first trading day.

The latest results in a nutshell: The company’s net income grew 9x y-o-y to SAR 38.2 mn in 2023, despite revenues falling 18.6% y-o-y to SAR 77.8 mn, according to its latest earnings release (pdf).

STRONG IPO PIPELINE

We have a solid IPO pipeline for Tadawul’s main market taking shape for this year:

• eXtra is looking to sell 30% of its highly profitable consumer finance arm;
• hotels and resorts operator Boudl has filed to go public;
• Labor agency Smasco is in the chute;
• Water treatment company Miahona has gotten approval for an offering of 30% of its shares;
• Dr Soliman Abdul Kader Fakeeh Hospital (DSFH) got clearance last week to go public;
• Fourth Milling Company will list before the end of June;
• Singapore’s Olam Group is mulling the IPO of its Olam Agri subsidiary on Tadawul;
• Hypermarket operator Lulu is said to be eyeing a dual listing on Tadawul and ADX;
• Aster DM Healthcare looks set to spin-off its GCC assets and seek a dual listing on Tadawul and in the UAE.

The Nomu pipeline also looks deep and includes medical supplies outfit Qomel, Riyadh-based construction and mining firm Mohammed Hadi Al-Rasheed, Leaf Global Environmental Services, petroleum derivatives manufacturer Petrol Naas, Arabian United Float Glass, and Gas Arabian Services (GAS).

BACKGROUND- Tadawul had a good 1Q. Regional broadcaster MBC made its debut in January in a USD 222 IPO on the main market, followed by Modern Mills and Avalon Pharma.

ADVISORS- Alinma Investment is quarterbacking the transaction as the sole lead manager and financial advisor. Meanwhile, Receiving agents include SNB Capital, Riyadh Capital, Saudi Fransi Capital, AlJazira Capital, Albilad Capital, Yaqeen Capital, ANB Capital, Alistithmar Capital, Derayah, and Alrajhi Capital.